Nonprofits face leadership crises as young employees flee

Published 4:00 am, Monday, March 3, 2008

The nonprofit sector is facing what experts call an unprecedented crisis in leadership, with organizations struggling to recruit and retain talented staff.

Even as Baby Boomers retire, nonprofit groups stand to lose ambitious young employees who feel underpaid, overwhelmed by long hours and demanding responsibilities, and frustrated by a lack of career progression, according to a major study to be released Monday.

The sobering report, "Ready to Lead? Next Generation Leaders Speak Out," could shake up the nonprofit sector, which has been successful at recruiting recent college graduates but not always at keeping them. Many leave for jobs at private companies that often offer better pay and more comfortable lifestyles.

People are drawn to work in the nonprofit sector because of the social change mission and the potential to make a positive impact on the community, and the survey finds that such workers remain deeply committed and inspired. But nonprofit organizations are not doing enough to retain them, said Patrick Corvington, a co-author of the report and a senior associate at the Annie E. Casey Foundation.

"Next-generation leaders are finding ways to get involved in social change and do good work," Corvington said. "But they're finding ways to do that outside of the sector."

The study found that 69 percent of respondents feel underpaid. About two-thirds reported they had financial concerns about committing to a career in the sector, and nearly half of that group said they would not make enough money to retire comfortably.

The study's authors recommend that nonprofit groups provide mentors and help employees meet leaders of similar organizations. They also suggest that nonprofit groups offer better salaries and benefits when possible and restructure organizations to give younger staff members more responsibility and create a more evident career track.

"Nonprofits are so focused on meeting their mission in the present tense that they don't think of succession planning," he said. "It's just not on the agenda because they're under such pressure to deliver, especially during economic downturns like this."